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Mortgage - buy to let advice needed

Hi

I've been offered the chance to purchase a property through family for

55k. The property has just been valued at 60 - 65k so it seems a reasonable investment.

I'm looking to but the property with my brother in order to rent it out. We'd need a mortgage of 60k to cover some improvements and could raised 10% of that as a deposit.

I'm trying to understand if there's a way to do it rather than a traditional buy to let mortgage where from what I can see will only give a mortgage on 85% of the purchase price which would demand a deposit of £8,250 and leave no cash for the improvements.

Is there any way of raising a higher some with a smaller deposit bearing in mind the relatively low value of the property. We both earn £20 - 25k a year and neither of us currently own a property.

What would happen if we purchased the property on a traditional mortgage, did the repairs and then said to the lender that we wanted to rent it out?

Any help appreciated..

Thanks Phil

Reply to
philboyduk
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Hi Phil

Generally lenders will base their lending on the purchase price - but there is a way round this. There is a facility where you can go up to

90% of the property value. If the property values up at top end i.e. 65K then you wouldn't need to put any money down plus have 5% to spare in addition to the money you already have put aside for refurb. You would bascially be buying it without using any of your money Would need more details to advise further.

Regards Jo Mortgage Advisor

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Reply to
janido

Thanks Jo

That's something I'll look into. I spoke to one mortgage adviser last week and they were adamant it was 15% of purchase price for the deposit or nothing. I think I better try some more!

Phil

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Reply to
philboyduk

Hi,

Did you check from

formatting link
yet? If homepage is not good enough merely type buy to let > Hi

Reply to
pappa1928

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